Finite horizon RI model

Consolidated Pipe Products has a required rate of return of $8\%.$ The current book value is $$5\mathrm{.}00.$ Earnings forecasts

for $2009,2010,$ and $2011$ are $$0\mathrm{.}90,$$$0\mathrm{.}90,$ and $$0\mathrm{.}80,$ respectively. Dividends in $2009$ and $2010$ are forecasted to be

$0\mathrm{.}50$ and $0\mathrm{.}50,$ respectively. The dividend in $2011$ is a liquidating dividend, which means that Consolidated will pay

out its entire book value in dividends and cease doing business at the end of $2011.$ Calculate the value of

Consolidated's stock using the residual income model.

a$.$ The residual income for the first year is:

$

Round your answer to two decimals

b$.$ The book value per share in the second year is:

$

Round your answer to two decimals

c$.$ The value of the company is:

$

Round your answer to two decimals